The Central Bank of Nigeria (CBN) has stated that the removal of subsidy coupled with the dynamics in the international oil market has reduced the demand for forex for oil importation.
An economist and a Principal Manager with the CBN, Osagie Clement, stated this before the House of Representatives adhoc committee investigating the recent fuel price hike at its investigative hearing on Wednesday.
According to him, the demand has reduced to 20% adding that, prior to the current situation, 35% amounting to $150 million in forex is dedicated to fuel imports intervention.
He added that the apex bank has little or no control over the Dollar exchange rate which determines the pump price of Petroleum Motor Spirit (PMS) in the country.
He informed that the CBN rate is only used by importers as a benchmark, but the rates differ in the open exchange market.
Clement however said the CBN as an intervention commits $150 million for PMS imports which he said the marketers access to help them in getting forex for importation.
The CBN economist however informed the committee that, with the measures taken as regards forex, there will be positive changes in the next four months.
He called on the House to as a matter of urgency prevail on the federal government to persuade the Ministry of Trade to put in measures to discourage the importation of anything that can be manufactured in Nigeria.
Also speaking before the committee, the Executive Director, Nigeria Midstream and Downstream Petroleum Regulatory Agency (NMDPRA) distribution systems, Ogbugo Ukoha, stated that market forces of demand and supply determine the prices of petroleum products.
He however noted that the Petroleum Industry Act (PIA) has given regulators the power to intervene against cartel monopolies and ensure healthy competition to deal with illegal profiteering.
In his remarks, the Chairman of the Ad-hoc Committee, Babajimi Benson (APC, Lagos), urged all agencies of government to play their part in ensuring that, Nigerians are not shortchanged as the federal government implements its policies aimed at putting the country on the right track.
He added that the National Assembly, particularly the House of Representatives will ensure strict compliance with extant laws and implementation of policies that will bring succour to Nigerians.
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